A-LevelEconomicsInternational Trade and Exchange RatesOct/Nov 2025Paper 1 Q281 Mark
Between June and the end of July 2016, the UK pound sterling depreciated by 11% against a basket of currencies of the UK's major trading partners. The diagram shows the original aggregate demand curve AD₁ and the original aggregate supply curve AS, for the UK economy before June 2016. The equilibrium is at X. [Figure 28.1] What would have been the new equilibrium for the UK economy as a result of the depreciation of the pound sterling?
APoint A
BPoint B
CPoint C
DPoint D
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of international trade and exchange rates within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep